Louisiana Introduces Increased Tax on Online Sports Betting to Fund College Athletics
BATON ROUGE, LA – Governor Jeff Landry has officially enacted House Bill 639, which raises Louisiana’s online sports betting tax rate from 15% to 21.5%. The new law, referred to as Act No. 298, will come into effect on August 1, 2025. Authored by Representative Neil Riser, the legislation is anticipated to bring in over $24 million annually, directly benefiting athletic departments at the state’s premier public universities.
The increase in the tax rate follows a recent federal court ruling that approved a $2.8 billion settlement allowing colleges to share revenue directly with student-athletes. This agreement allows each NCAA Division I school to distribute up to $20.5 million to its athletes in its first year. Although state tax money cannot be directly allocated for NIL (Name, Image, and Likeness) payments, it can potentially free up other university funds in support of student-athletes.
A quarter of the newly generated tax revenue will be split among Louisiana’s 11 Division I public universities, aiding in scholarships, medical care, facility upgrades, and other essential costs. The remaining majority will bolster the state’s general fund.
Louisiana now stands as the first state to hike taxes specifically to support college sports post-settlement, reflecting its dedication to higher education athletics. This move underscores the state’s deep-rooted passion for sports, particularly football, as noted by Riser.
The universities that will benefit include prominent institutions such as Louisiana State University, University of Louisiana at Lafayette, and Southern University, among others. Governor Landry signed the bill on June 11, a strategic final act before the legislative session concluded, promising a significant boost to college athletics in the state.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
